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Severn Trent Ups Offer for Water Company Dee Valley.

MANews-(C)2009-2016

28 November 2016 - UK-based water company Severn Trent plc's (LSE: SVT) Severn Trent Water Ltd subsidiary has increased its cash offer for Dee Valley Group Plc (LSE: DVW), the company said.

Earlier this month, the boards of Severn Trent and Dee Valley Group reached agreement on the terms of a recommended acquisition of the entire issued and to be issued voting and non-voting ordinary share capital of Dee Valley by Severn Trent Water.

Under the terms, Dee Valley ordinary voting shareholders would receive 1,705 pence in cash per Dee Valley ordinary voting share they hold.

That deal was worth USD 78.5m.

Under the terms of the revised acquisition, Dee Valley ordinary voting shareholders will receive 1,825 pence in cash for each Dee Valley ordinary voting share held.

The revised acquisition values the entire issued share capital of Dee Valley at approximately GBP 84m (USD 104.24m).

This revised acquisition includes a revised comparable cash offer for the Dee Valley ordinary non-voting shares priced at 1,713 pence per share, in accordance with Rule 14 of the Takeover Code.

Dee Valley Group is the holding company for Dee Valley Water, a drinking water supply company. Dee Valley Water plc provides its services to customers predominantly in Chester and North East Wales.

Severn Trent said that Dee Valley is a natural as it operates in neighbouring areas in England and Wales.

The company plans to maintain a separate Welsh licence for Dee Valley and, subject to regulatory approval, intends that the whole of Severn Trent's business in Wales will be regulated under Welsh government Policy.

Dee Valley's customers will share in half of any wholesale cost efficiencies achieved, which will be reflected in future bills.

Severn Trent is undertaking an over GBP 3bn investment programme in AMP6. Severn Trent said it plans to fully support continued investment in infrastructure in the Dee Valley region.

Country: UK

Sector: Utilities

Target: Dee Valley Group

Buyer: Severn Trent Water

Vendor:

Deal size in USD: 104.24m

Type: Corporate Acquisition

Financing: Cash

Status: Agreed

Buyer advisor: , ,

Comment:

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Publication:M & A Navigator
Geographic Code:4EUUK
Date:Nov 28, 2016
Words:347
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